Indexes
October 15, 2017 FPI | Shall We Expect a Cold and Expensive Winter?
16
October
2017
In the first half of October, food prices in Tbilisi’s major supermarkets increased by 10.8% compared to October 2017. On a monthly basis (that is, compared to September 2017), ISET’s Retail Food Price Index increased slightly by 1.7%. On a biweekly basis, most of the prices increased, leading to a higher Retail FPI. The largest bi-weekly price changes were recorded for seasonal food products such as fresh fruit and vegetables. Prices increased the most for cucumbers (51%), eggplants (43%), and peaches (22%). Carrots (4%), sugar (3%), and pasta (1%) showed the biggest price drops.
PRICES OF FOOD CATEGORIES IN MORE DETAILS
Tbilisi’s retail markets experienced significant annual price increases in all five food categories comprising the Retail FPI: fruits and vegetables (2.0%), grocery (2.5%), non-alcoholic beverages (6.6%), meat (9.2%), and dairy products (13.1%).
The most drastic price increases were observed for dairy products. One explanation might be the changes in regulations undertaken because of the Association Agreement (AA) between the EU and Georgia. Following stricter food safety regulations, on July 1st, 2017, the technical regulations for the dairy sector came into force. In addition, the recent spike in international prices might also have put additional upward pressure on prices in the dairy sector. According to the FAO’s latest data on their Dairy Price Index, dairy prices increased by 27.4% on an annual basis, reflecting supply constraints in the EU, Australia, and New Zealand.
Georgian consumers may be even more concerned about food prices, as the Georgian lari is experiencing depreciation: in October, the exchange rate between the Georgian lari and the U.S. dollar moved up from 2.36 GEL/USD to 2.48 GEL/USD, compared to the corresponding time period last year. Since Georgia is a net importer of food commodities, one might expect further price increases, especially if international trends are maintained in the future. Food spikes in early October might signal hard times for Georgian consumers in winter.
Recent Publications
View All
September 2024 | Agri Review
04
October
2024
The National Statistics Office of Georgia (GeoStat) has published its second quarterly bulletin for 2024. The publication highlights that the real GDP in agriculture, forestry, and fishing increased by 0.7% compared to the first quarter of 2023. Furthermore, agriculture contributed to 5.3% of the country’s total GDP during the first quarter of 2024.
June 2024 | Agri Review
28
June
2024
In June 2024, the National Statistics Office of Georgia issued its annual publication on the agricultural sector – Agriculture of Georgia 2023. The publication estimates that agriculture, forestry, and fishing comprised 6.9% of the GDP in 2023, which is slightly lower than in previous years, but in line with general trends over the last few years (agricultural GDP being 7-8% of GDP on average).
March 2024 | Agri Review
01
April
2024
In June 2023, responding to appeals from the Georgian Flour Producers Association, the Georgian government imposed a temporary import duty on wheat flour imported from Russia. This advocacy by the Association began after Russia implemented a “floating tariff” on wheat in 2021, making wheat imports more expensive compared to wheat flour.
December 2023 | Agri Review
29
December
2023
Citrus production in Georgia is currently experiencing a declining trend, despite the implementation of a tangerine state subsidy program. Under the program, farmers receive 30 instead of 15 tetri for 1 kg of non-standard (low-quality) tangerines.
September 2023 | Agri Review
29
September
2023
Rtveli 2023 commenced this August. Similar to previous years, the Government of Georgia (GoG) is subsidizing the grape harvest again to support farmers who have suffered from worsening climate conditions. Based on information from MEPA representatives, the subsidy's primary aim is to guarantee that even producers with lower-quality grapes can still sell their products.
